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O2 bump up broadband prices for second time in 3 months
Thursday 03 February 2011 17:38:58 by John Hunt

O2 have announced new pricing that will take affect from the 31st March 2011 which will see prices increase by a small amount for most users whilst some may see a large price rise. This follows the recent price rises that customers have faced due to the VAT increased to 20%. Some users may be slightly miffed at an increase so soon after the VAT rise but this is to help them continue with investment.

"The use of the internet has changed dramatically in recent years, and in order for us to continue to give you the level of service that you'd expect from us we need to continue to invest in our network to keep up with demand.

Since launching Home Broadband and Home Phone we have maintained the same price levels across our packages whilst offering market leading products with unlimited or very generous download levels; however we cannot continue to maintain this service level at the same price in the current climate. Whilst the prices are increasing, we still remain competitive against other Internet Service Providers. We're always striving to give you a great customer experience."

O2 Statement

Users on older unlimited packages are seeing higher price rises to bring them more in to line with the existing packages. O2 say this is due to the higher costs involved of offering these unlimited packages.

  Old Prices - O2 mobile users Old Prices - not on O2 New Prices - O2 mobile users New Prices - not on O2
The Basics £8.17 £13.25 £8.50 £13.50
The All Rounder £12.25 £17.36 £12.50 £17.50
The Works £20.43 £25.53 £21.00 £26.00
Access £18.38 £23.49 £22.50 £27.50

Users on the Access product will see the price increase by around £5. This is the 'national' product which is offered where O2 have not unbundled the telephone exchange to provide broadband services. The large increase is reportedly due to the product being sold at a loss previously, and the new price reflects the true cost of providing this option.

Home Phone prices are also changing. The line rental charge is actually dropping from £7.66 to £7.50, but there will be an increase which offsets this of £2 to £2.50 for the evening and weekend call package, and £5.11 to £6 for customers with an anytime call package.

Full details of the changes can be found on the O2 website along with an FAQ about the price changes.

Comments

Posted by herdwick over 6 years ago
The financial losses and low sales as a % of O2 mobile customers couldn't go on for ever.

It's either this or scrap the multiplay dream.
Posted by AceGio over 6 years ago
Why do they not hit the heavy users with the large download values if that is their problem? Forcing the average user onto their 'shapped / speed restricted' network packages is hardly ideal for them.
Posted by krazykizza over 6 years ago
we all knew it was coming. cheap broadband doesn't stay forever.
Posted by bosie over 6 years ago
Good. If paying more means better performance I'm all for it otherwise people will simply jump ship.
Posted by Dixinormous over 6 years ago
To think they could have followed Virgin's lead and shaped / throttled the nuts of the services instead.
Posted by undecidedadrian over 6 years ago
But the new packages are traffic managed as well.

I assume that Telefonica has got problems in Spain and just doesn't want to subsidise the UK market anymore.
Posted by otester over 6 years ago
@AceGio

Or they could just not oversell bandwidth...
Posted by warweezil over 6 years ago
@ Herdwick. Low sales as a % of mobile customers could in part be down to the lack of LLU in many places. It is well known that the BTw resold package is overcontended. I know of no one round here that has stayed with it for more than 12 months.(Market 1)
Posted by herdwick over 6 years ago
their LLU covers at least 50% of the population, yet from 22m mobile customers they have a few percent of them on their broadband ? Pretty poor really, Sky at least managed to cross sell to their userbase - three years ago they had more BB customers than Be have now, with similar LLU footprint issues.
Posted by brutos over 6 years ago
my contract ran out on the 02/02/2011 am of to bethere then screw o2
Posted by shaunhw over 6 years ago
brutos wrote:
"
my contract ran out on the 02/02/2011 am of to bethere then screw o2
"
Bethere is owned by O2. Is it possible we will end up being hammered as well eventually ? Bethere is currently the best there is in my opinion and I tried a few before I settled with them.
Posted by AndrueC over 6 years ago
I've been expecting BeThere to suffer ever since I joined them. That was four years ago and it's not happened yet. Still, things don't look good for Telefonica and Be/O2 have yet to come up with an FTTC product. Maybe this is the year :-/
Posted by otester over 6 years ago
Even Be isn't the best.

Look up some of the top10 on ispreview.co.uk
Posted by chrysalis over 6 years ago
O2 were simply too late to the market which in itself is way over competitive. Is sad that even paying people to sign up they have low takeup.
BE is suffering Andrue more frequent congestion related events and some long term congested exchanges.
Posted by otester over 6 years ago
@chrysalis

Not just that, they deserve all they get, when it comes to mobile they have completely underinvested, poor coverage (even got in trouble for it) and a congested Market 1 product.

And now they are using traffic shaping...
Posted by pigfister over 6 years ago
more money for a reduced service, sounds like capitalism to me!

http://www.o2.co.uk/broadband/

lol i see O2 are still advertising their service as "Download as much as you want" feckin scum bag lairs, maybe its their own fault for leading ppl on & underinvestment that has led to network congestion? maybe instead of rubbing their greasy hands on all their profits they should give something back to the people.
Posted by madkingsoup over 6 years ago
Aren't you supposed to give notice of a change in price? I've not heard a peep from them about this. I'd like to see them suddenly change my price without warning me - I pity the customer service advisor who gets my call...
Posted by O2-D2 over 6 years ago
@ madkingsoup

I got a text and email on Thursday from O2.

Not happy, especially as I was on the older tariff. It means a 24% increase since the start of the year and 27% since December! But good prices never last long when it comes to ISPs...
Posted by boilbag over 6 years ago
I got email yesterday. No mention of what my new price will be. My package at the moment is "Home broadband premium" at £15.32 per month. I am completely in the dark, I assume I will be getting one of the new packages at an increased price!!!!
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